SONSonoco Products Company demonstrates solid fundamental strength with consistent profitability and a reasonable valuation. Thematic tailwinds in packaging and sustainability are positive, though technical indicators suggest a neutral to slightly cautious short-term outlook.
Sonoco operates in the essential packaging sector, benefiting from trends in consumer goods and industrial packaging. Its focus on sustainability provides a moderate thematic advantage.
Sonoco exhibits robust financial health with solid profitability, strong cash flow generation, and a manageable debt level, though recent revenue trends show some contraction.
Sonoco's stock price is currently trading within a range, with mixed signals from technical indicators. It has pulled back from recent highs and shows a neutral to slightly bearish short-term trend.
| Factor | Score |
|---|---|
| Sustainable Packaging Solutions | 80 |
| Consumer & Industrial Demand | 75 |
| Economic Sensitivity | 60 |
| Innovation in Packaging Technology | 70 |
| Factor | Score |
|---|---|
| Valuation | 45 |
| Profitability | 30 |
| Growth | 50 |
| Balance Sheet Health | 60 |
| Cash Flow | 85 |
| Dividend Sustainability | 80 |
| Factor | Score |
|---|---|
| Trend Analysis | 60 |
| Momentum | 70 |
| Volume Confirmation | 70 |
| Support & Resistance | 65 |
| Short-Term Oscillators | 60 |
Consistent EPS Beats
The company has a track record of beating analyst EPS estimates in most of the recent quarters (e.g., Q4 2024, Q3 2024, Q2 2024), indicating strong operational execution and effective cost management.
Reasonable P/E Ratio
The trailing P/E ratio of 76.8, while seemingly high, needs to be considered in conjunction with its industry peers and future growth prospects. The TTM P/E of 76.8 and 2024 estimated P/E of 28.7 suggest potential for growth to justify the valuation, especially if next year's earnings meet or exceed estimates.
High P/E Ratio and Volatile Quarterly P/E
The trailing P/E ratio is high at 76.8, and quarterly P/E ratios have shown significant volatility (e.g., -109.6 in Q4 2024). This suggests the stock might be overvalued or subject to significant earnings fluctuations.
Slowing Revenue Growth
While annual revenue for 2024 ($5.31B) is down from 2022 ($5.86B) and 2023 ($5.44B), the quarterly revenue figures show fluctuations, with a significant drop in Q4 2024 ($0.37B) compared to other quarters in 2024 and prior years. This indicates potential challenges in consistent revenue generation.
July 2025
24
Next Earnings Date
H: $2.05
A: $2.00
L: $1.93
H: 2.24B
A: 2.17B
L: 2.09B
August 2025
8
Ex-Dividend Date
September 2025
10
Next Dividend Date
Sonoco Products Company, together with its subsidiaries, designs, develops, manufactures, and sells various engineered and sustainable packaging products in the United States, Europe, Canada, the Asia Pacific, and internationally. The company operates in two segments, Consumer Packaging and Industrial Paper Packaging. The Consumer Packaging segment provides round and shaped rigid paper products and steel and plastic containers; and metal and peelable membrane ends, closures, and components. The Industrial Paper Packaging segment offers paperboard tubes, cones, and cores; paper-based protective packaging products; and uncoated recycled paperboards. The company also offers various packaging materials, including plastic, paper, foam, and various other specialty materials. The company sells its products in various markets, which include paper, textile, film, food, packaging, construction, and wire and cable. Sonoco Products Company was founded in 1899 and is headquartered in Hartsville, South Carolina.
57.30 USD
The 39 analysts offering 1 year price forecasts for SON have a max estimate of 65.00 and a min estimate of 50.00.